STRONG GROWTH AND FRESH IMPROVEMENT IN PROFITABILITY
REVENUE: €804 million (+8.3%)
OPERATING MARGIN[1]: €52 million (+16%)
NET PROFIT: €20 million (+48%)
DOUBLING OF NET EARNINGS PER SHARE IN TWO YEARS
Saint-Ouen (France), 26 February 2015 - At its 26 February 2015 meeting chaired by Vincent Rouaix, the Gfi Informatique board of directors considered the condensed consolidated financial statements for the year ending 31 December 2014[2].
| Main items of profit & loss account | 31.12.14 | 31.12.13 | Variation | Variation% | ||||
| Revenues | 804,0 | 742,7 | 61,3 | 8% | ||||
| Operating margin 2 | 52,0 | 45,0 | 7,0 | 16% | ||||
| Operating margin % | 6,5% | 6,1% | 0,4 bp | |||||
| Operating profit | 36,3 | 29,8 | 6,5 | 22% | ||||
| Net income from continuing operations | 20,0 | 13,5 | 6,5 | 48% | ||||
| Earnings per share (in euros) | 0,37 | 0,25 | 0,12 | 47% | ||||
| Principal cash components | ||||||||
| Cash from operating activities | 50,1 | 40,9 | 9,2 | 23% | ||||
| Net debt | 67,7 | 46,9 | 20,8 | 44% | ||||
| Gearing | 32% | 23% | 9 bp | |||||
"Gfi Informatique has once again successfully combined organic growth and acquisitions with an improvement in profitability. In 2014, the Group met all the transformation targets it set itself in 2009 and is now ready to embark on a new growth phase" stated Vincent Rouaix, Chairman and Chief Executive Officer.
GROUP ACTIVITY: REVENUE UP 8.3% - EBITDA[3] INCREASED BY 17.4% AND THE OPERATING MARGIN BY 15.6%
The Group's revenue totalled €804 million in 2014, up 8.3% compared with a year earlier. At constant scope and exchange rates, revenue increased by 3.2%.
EBITDA totalled €61.4 million compared with €52.3 million in 2013, an increase of 17.4% (7.6% of the revenues). The Group's operating margin amounted to €52 million, or 6.5% of revenue, compared with €45 million in 2013, an increase of 15.6%.
- In France: revenue up 9.1%, operating margin up 13.7%
In France, which represents 86% of Group revenue, the Group continued to strengthen its position among the leading IT services companies on the market. Revenue grew by 9.1% and by 3.2% like-for-like to €689.5 million, compared with €631.8 million a year earlier. In the fourth quarter, France recorded its sixteenth successive quarter of organic growth, providing clear evidence of the dynamism of both its historical activities and those acquired in previous years.
Growth also stemmed from the ongoing bolt-on acquisitions strategy, which has been one of the drivers of Gfi Informatique's growth since 2011. Over the course of 2014, Gfi Informatique acquired successively:
- Awak'IT (revenue of €6 million, 45 employees) in digital,
- ITN (revenue of €15 million, 110 employees) in software,
- Airial in services, predominantly in third-party application maintenance (revenue of €30 million, 350 employees),
- and iORGA (revenue of €9 million, 80 employees), a specialist in the integration of the Oracle-JDE ERP.
In a still difficult economic environment, the French business maintained high billing rates while improving the activity ratio of its staff. These two factors, combined with the industrialisation pursued by the Group since 2009 - industrialisation supported by the CICE- drove a further improvement in profitability. The operating margin came to €48 million compared with €42.2 million in 2013, up 13.7%. This represented 7% of revenue, the first time it has reached this level since 2007.
- International: return to organic growth and improvement in profitability - small acquisitions in French-speaking Africa
In the full year, revenue totalled €114.5 million compared with €111 million in 2013, up 3.4% like-for-like. The international business had not grown since 2011 and has recovered its previous momentum, especially in Spain and BeLux. The operating margin came to 3.5% compared with 2.5% a year earlier, and all countries reported improvements relative to 2013.
With the acquisition of NVBS, Gfi Morocco strengthened its presence in Morocco and significantly enriched its service offering by integrating a Microsoft centre of expertise, in line with the Group's strategy. NVBS has 17 employees and a portfolio of prestigious Moroccan customers, especially in manufacturing and retailing. Gfi Informatique signed with SOMAFOR, based in in Ivory Coast and more generally Western Africa. SOMAFOR is an IT Services Company with a headcount of around 50, that specialises in the integration of ERP systems.
GROWTH IN OPERATING PROFIT: +21.8% - GROWTH IN NET PROFIT: +48%
Operating profit grew from €29.8 million to €36.3 million, mainly thanks to the improvement in profitability noted earlier. Other operating income and expenses were stable in value at €12.7 million and included restructuring costs, notably relating to acquisitions and the expenses associated with them.
Net profit attributable to the Group grew vigorously (+48%) to €20 million. Earnings per share came to €0.37 compared with €0.25 in 2013.
CASH FLOW UP 22.6% - NET DEBT/EBITDA[4] RATIO OF 1.1
In 2015, thanks to the improvement in its profitability, the Group's cash flow improved sharply to €50.1 million compared with €40.9 million, up 22.6%. Investments (capex and acquisitions) represented €-34.8 million compared with €-8.2 million a year earlier, up €-26.6 million. Combined with the increase in dividend payments and share buybacks, total outlays rose by €32.3 million.
Over the same period, the net debt/EBITDA ratio was near stable at 1.1 compared with 0.9 in 2013, a noteworthy achievement. Net debt totalled €67.7 million at 31 December 2014 compared with €46.9 million a year earlier.
STAFF
At 31 December 2014, the Group had around 10,900 employees, including 8,600 in France and 1,600 staff at service centres. This change reflects the Group's determination to offer on-the-spot industrialisation services adapted to the centralisation and specialisation expected by its customers.
A SECOND STEP IN THE GROUP'S TRANSFORMATION
The Group will launch the second step of its transformation plan in 2015. In line with its past achievements, the Group will continue to pursue its high value-added sectoral approach with its leading customers, supported by the triple-tier Proximity, Industrialisation and Innovation strategy. In addition, the Group will step up its internal and external investments in solutions with the objective of enriching its vertical functionalities and creating synergies with the integration offer and innovative offers such as digital, outsourcing, the Cloud and Big Data, areas in which the Group had already invested strongly and positioned itself in 2014. Lastly, the Group will use solutions to strengthen its international positions in all markets where it already operates, as well as in strong-growth regions such as Africa. The mid-term objective is to exceed revenue of €1 billion and an operating margin of at least 8%.
OUTLOOK
In 2015, the Group is aiming for further growth in its activity and a continued improvement in its operating margin, despite the still fragile economic environment in France. The Group will be on the look-out for acquisition opportunities in software products and internationally.
[1] Operating profit before non-recurring items, including goodwill impairment, and before the amortisation of associated intangible assets.
[2] Audits have been performed on the consolidated financial statements. The certification report will be issued after the finalisation of audits on the consolidated financial statements, as well as those required for the publication of the annual financial report.
[3] EBITDA : Operating margin restated from non cash items.
[4] EBITDA : Operating margin restated from non cash items.
Next release: 29 April 2015, first-half 2015 revenue
Disclaimer
The items in this press release other than historical facts are estimates. They do not constitute guarantees because of the inherent difficulties in forecasting results. Actual results may differ considerably from explicit or implicit forecasts.
About Gfi Informatique
Gfi Informatique is a major player in value-added IT services and software in Europe, and occupies a strategic position in its differentiated approach to global firms and niche entities. With its multi-specialist profile, the Group serves its customers with a unique combination of proximity, sector organisation and industrial-quality solutions. The Group has around 11,000 employees and generated revenue of €804 million in 2014.
Gfi Informatique is listed on the Paris Euronext, NYSE Euronext (Compartment B) - ISIN Code: FR0004038099.
For more information: www.gfi.fr
| For further information, please contact: | ||
| GFI INFORMATIQUE Directeur Administratif et Financier Cyril MALHER Tél. : +33 1 44 04 50 64 cyril.malher@gfi.fr | KEIMA COMMUNICATION Relations investisseurs Emmanuel DOVERGNE Tél. : +33 1 56 43 44 63 emmanuel.dovergne@keima.fr | AGENCE YUCATAN Relations presse Caroline PRINCE Tél. : +33 1 53 63 27 35 cprince@yucatan.fr |
APPENDICES
| Consolidated income statement | 2014 | 2013 | 2012 | ||||
| in euro '000 | restated (1) | ||||||
| Revenues | 804,0 | 742,7 | 667,3 | ||||
| EBITDA | 61,4 | 52,3 | 46,7 | ||||
| Depreciation and amortization net | 9,4 | 7,3 | 6,9 | ||||
| Operating margin | 52,0 | 45,0 | 39,8 | ||||
| Operating margin % | 6,5% | 6,1% | 6,0% | ||||
| Amortization of assigned intangible assets | -2,0 | -1,8 | -1,5 | ||||
| Goodwill impairment losses | -1,0 | 0,0 | -3,3 | ||||
| Other operating products and expenses | -12,7 | -13,3 | -11,6 | ||||
| Operating profit | 36,3 | 29,8 | 23,4 | ||||
| Financial result | -7,0 | -7,0 | -6,6 | ||||
| Income tax expense | -9,3 | -9,3 | -8,0 | ||||
| Net income from continuing operations | 20,0 | 13,5 | 8,8 | ||||
| Net income of discontinued operations | 0,0 | 0,0 | 3,3 | ||||
| Net income attributable to the Group | 20,0 | 13,5 | 11,6 | ||||
| Earnings per share (in euros) | 0,37 | 0,25 | 0,16 | ||||
| '(1) restated revised IAS 19 | |||||||
| Consolidated cash flow statement | 2014 | 2013 | 2012 | ||||
| in euro '000 | restated (1) | ||||||
| Cash from operating activities | 50,1 | 40,9 | 34,9 | ||||
| Tax paid | -11,2 | -10,3 | -8,3 | ||||
| Change in WC requirement | -7,3 | -7,3 | 1,2 | ||||
| Net cash from operating activities | 31,6 | 23,3 | 27,8 | ||||
| Net cash from investing activities off perimeter | -12,6 | -9,8 | -8,2 | ||||
| Net cash linked to perimeter investment : Canada | 0,0 | 9,8 | 46,0 | ||||
| Net cash linked to perimeter investment : Other | -22,2 | -8,2 | -14,3 | ||||
| Net cash from investing activities | -34,8 | -8,2 | 23,5 | ||||
| Dividends | -5,4 | -3,2 | -4,8 | ||||
| Repurchases and sales of treasury shares | -2,8 | 0,7 | -1,6 | ||||
| New borrowings | 27,7 | 0,0 | 37,7 | ||||
| Repayment of borrowings | -10,4 | -8,0 | -44,5 | ||||
| Interests paid | -4,1 | -4,7 | -4,5 | ||||
| Change in factoring drawdowns and other | -6,7 | -5,4 | -9,2 | ||||
| Net cash from financing activities | -1,8 | -20,6 | -26,9 | ||||
| Change in cash and cash equivalents of continued activities | -5,1 | -5,5 | 24,3 | ||||
| Net cash from discontinued operations | 0,0 | 0,0 | -16,3 | ||||
| Effect of changes in foreign exchange rate | 0,0 | 0,0 | 0,0 | ||||
| Change in cash and cash equivalents | -5,1 | -5,5 | 8,0 | ||||
| (1) restated revised IAS 19 | |||||||
| Consolidated statement of financial position | 2014 | 2013 | 2012 | |||
| in euro '000 | restated (1) | |||||
| Goddwill | 218,3 | 200,5 | 192,1 | |||
| Fixed assets | 51,5 | 44,0 | 41,2 | |||
| Current and non current assets | 359,4 | 318,5 | 320,4 | |||
| Cash ans equivalent cash | 35,9 | 48,2 | 40,2 | |||
| Total assets | 665,1 | 611,3 | 593,8 | |||
| Net equity - Group share | 211,0 | 202,6 | 189,6 | |||
| Minority interests | 0,0 | -1,8 | -1,6 | |||
| Borrowings | 103,6 | 95,1 | 93,5 | |||
| Current and non current liabilities | 339,1 | 299,3 | 294,2 | |||
| Financial liabilities and current provisions | 11,4 | 16,0 | 18,3 | |||
| Total liabilities and shareholders equity | 665,1 | 611,3 | 593,8 | |||
| '(1) restated revised IAS 19 | ||||||
| Net debt | 67,7 | 46,9 | 53,3 | |||
| Gearing | 32% | 23% | 28% | |||
| Working capital (excludind Income tax debt) | 42,2 | 29,4 | 29,8 | |||
| in euro '000 | 2014 | France | Spain | Portugal | Belux | Switzerland | Morocco | ||
| Revenues | 804,0 | 689,5 | 67,2 | 15,0 | 24,5 | 2,1 | 5,7 | ||
| Operating margin | 52,0 | 48,0 | 1,6 | 0,3 | 1,5 | -0,1 | 0,7 | ||
| Operating margin % | 6,5% | 7,0% | 2,4% | 1,7% | 6,3% | NS | 12,2% | ||
| in euro '000 | 2013 | France | Spain | Portugal | Belux | Switzerland | Morocco | ||
| Revenues | 742,7 | 631,8 | 63,2 | 16,5 | 23,8 | 1,7 | 5,8 | ||
| Operating margin | 45,0 | 42,2 | 1,3 | 0,2 | 1,1 | -0,3 | 0,5 | ||
| Operating margin % | 6,1% | 6,7% | 2,0% | 1,0% | 4,6% | NS | 8,1% | ||
| in euro '000 | 2012 | France | Spain | Portugal | Belux | Switzerland | Morocco | ||
| Revenues | 667,3 | 546,6 | 67,4 | 21,5 | 24,2 | 1,7 | 5,9 | ||
| Operating margin | 39,8 | 34,7 | 3,1 | 0,5 | 1,3 | -0,3 | 0,5 | ||
| Operating margin % | 6,0% | 6,3% | 4,6% | 2,3% | 5,2% | NS | 9,1% | ||
